Cisco to Buy Cloud-Security Provider CloudLock -- Update
June 28 2016 - 2:42PM
Dow Jones News
By Don Clark and Brittney Laryea
Cisco Systems Inc. on Tuesday said it is buying CloudLock Inc.,
a startup that helps companies monitor and control how employees
are using cloud services.
The $293 million deal for the closely held company includes a
combination of cash and assumed equity awards, Cisco said. The
company agreed to pay additional retention incentives to CloudLock
employees who join Cisco.
Cisco, the biggest maker of networking hardware, has used
acquisitions to help build a major sideline in security software
and services. It agreed to pay $2.7 billion in 2013 for Sourcefire
Inc., a maker of security hardware and software, and $635 million
in 2015 for OpenDNS, which uses internet domain name servers to
help block cyberattacks.
CloudLock, based in Waltham, Mass., developed its technology to
address the widening use of cloud-based apps from companies such as
Salesforce.com Inc. and Dropbox Inc., which can hold sensitive
company files. Its online software helps track how employees are
using such services and enforce security policies, such as limiting
how they access and transfer files, Cisco said.
The acquired company, which has about 130 employees, will become
part of a security group led by David Goeckeler, a Cisco senior
vice president who also is responsible for networking products. He
said that Cisco hopes to market each security product individually
while gradually creating an "architecture" for a suite of offerings
that work together well.
"The issue in security is, it's not good enough to have a bunch
of best-of-breed products," Mr. Goeckeler said in an interview.
The companies expect the deal to close by November.
Cisco Systems shares rose 1% Tuesday afternoon amid a broader
market rally.
Write to Brittney Laryea at Brittney.Laryea@wsj.com
(END) Dow Jones Newswires
June 28, 2016 14:27 ET (18:27 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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